One of the key challenges companies that use fleets is the challenge of achieving the highest possible fleet asset utilization rate. The more you get out of your current fleet, the more you can stay ahead of your competition.
To strategically improve fleet utilization requires looking at each individual vehicle’s utilization so you can make incremental changes that add up to larger savings. The result of a well-utilised fleet is not only boosted productivity and decreased costs, but also increased profitability which is the real value of doing more with less.
People, Process and Technology are the three areas you need to focus on to improve your fleet utilization.
- The workers in your organisation, (both drivers and non-drivers) constitute the people. In order to improve your fleet utilization, your staffs need to be given the requisite training in emerging technologies and processes.
- Your fleet operations need to be looked at in order to identify where problems lie in order to improve. Dynamic routing and backhauling can be used to maximize each trip. Dynamic routing can be used by the fleet managers to handle multiple factors effectively. With dynamic routing, all the stops for delivery are analyzed each day to determine the best route by using the best sequence of stops to save on time and fuel consumption of the trucks. Backhauling is another cost-effective way to maximize each trip. This means that the fleet vehicles transport goods not only from the source to the destination but also during the return trip.
- Technology can be harnessed to get the best out of your fleet. You can use fleet tracking software which makes use of GPS technology to monitor the actual use of the vehicles in your fleet to determine which are getting the most or the least use and make the necessary changes to your inventory. Technology such as motor pool application, which is comprehensive solution, can also be used. This technology allows vehicle operators to capture vehicle usage and trip information. As a result, fleet managers can ‘right-size’ a fleet while increasing utilization.
There are multiple ways in which you can determine whether your fleet’s assets are being utilized at an optimal level and improve on it—regardless of fleet size or budget.